Friday, January 16, 2015

RBI brings existing Project Loans of over ` 500 cr within 5/25 ambit

The Reserve Bank of India (RBI) allowed banks to refinance existing infrastructure projects under
the 5/25 model, provided commercial operations have begun and the total exposure is over ` 500 crore. While the new norms will allow banks to refinance many loans, several projects that are
stuck due to clearances will be out of the ambit of such refinancing.


  • Only projects that have started commercial operation permitted to be refinanced
  • The total exposure of the lenders should exceed ` 500 cr
  • The requirement of 25% of the loan to be refinanced by new lenders scrapped
  • Refinance may be taken up by the same lender or a set of new lenders, or combination of both
  • Existing projects also allowed to be refinanced
  • Accounts classified as non-performing assets could also be refinanced but will nevertheless remain NPA.


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